Gilat Second Quarter 2012 Conference Call Script 15 August, 2012

Gunther Karger - Discovery Group - Analyst
Thank you for taking the call, and first, congratulations on an outstanding quarter. The question has to do
with the overall world economics as it evolves. It looks like it is rather weak. Would it be a fair statement
to make that the offerings that Gilat has offers an opportunity for an increased efficiency and, therefore,
not being impacted that much, in fact might even be improved because of the overall worldwide
economic situation?
Erez Antebi - Gilat Satellite Networks Ltd.
I don't think I would go so far as to say that. I think that the offerings that we have, they present an
alternative to -- in our Commercial business, they present an alternative to terrestrial broadband where
that does not exist. And, therefore, in our commercial business, we are seeing most of our revenues
coming from more developing areas of the world -- Latin America, Asia, former CIS, etc., which has I
think still a very robust economy.
On the defense side, like I said, our main technological advantage is mostly around a big technical
advantage or technological advantage over our competition in Satellite-on-the-Move, which, as I
mentioned previously, is actually an area of the US defense budget that is not being hurt and perhaps even
growing.
So I would not tie it to specifically efficiencies of some kind in our equipment are going to enjoy -- are
going to do better because of the economic downturn worldwide. I would look at it a bit different.
Gunther Karger - Discovery Group - Analyst
Thank you.
Operator
Mike Cikos, Sidoti & Co.
Mike Cikos - Sidoti & Company - Analyst
Good morning. Congratulations on the quarter, guys. Just a question, I wanted to follow up on the NBN.
So you delivered 10,000 VSATs at this point, and you are saying that could grow to 48,000 sites, which
would provide an opportunity of about $120 million for you guys. Would the $120 million then be
received by, I think in the press release you say the 48,000 sites would be deployed by late 2015? Would
you see the $120 million by then as well, or would it come in later based on service or maintenance?
Erez Antebi - Gilat Satellite Networks Ltd.
No, I think if the network were to grow to that size and there is no assurance that it will, but if it were to
grow to that size, I would expect that the major portion of the $120 million we would be able to recognize
that by around 2015. But it will be gradual, and the rate exact is not predetermined, and we cannot really
forecast that.
8